Implied volatility (IV) is a market's forecast that is often used to help traders determine the correct trading strategies ...

Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

Ryan Eichler holds a B.S.B.A with a concentration in Finance from Boston University. He has held positions in, and has deep experience with, expense auditing, personal finance, real estate, as well as ...

Options can be used to express specific trading views, but before diving into options trading, you must understand how an option premium works — a vital component that can make or break your trading ...

What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

When you purchase an options contract, you're purchasing the right to buy or sell a stock (or other security) at a set price. Many, or all, of the products featured on this page are from our ...

Once you know the basics of how options work, putting options trading strategies in place marks the next step. Many, or all, of the products featured on this page are from our advertising partners who ...

The options calculator below can help you with both call and put options. Feel free to test out some examples to find an option’s theoretical price. Then below the options profit calculator, you can ...

The popularity of stock options trading has soared in recent years, as retail stock traders have become more comfortable with managing their own investment portfolios and dipping their toes into the ...

A stock option is a contract that gives you the right to buy or sell a stock at a certain price in the future. Stock options can be used to hedge against potential losses in your portfolio. Employee ...

Options are a type of derivative, which means they derive their value from an underlying asset. This underlying asset can be a stock, a commodity, a currency or a bond. To help you understand the ...